Shares of Yalla Group Ltd. (NYSE: YALA), the leading voice-centric social networking platform in the Middle East and North Africa, soared over 5% in after-hours trading on Friday, following the company's strong third-quarter 2024 financial results. Yalla reported revenue of $88.92 million, beating analysts' consensus estimate of $82.79 million by a significant 7.4% margin. The top-line figure also grew 4.4% year-over-year, driven by continued expansion of Yalla's user base and high engagement levels across its platforms.
The Dubai-based tech company's adjusted earnings per share came in at $0.24 for the quarter. While details on profitability relative to Wall Street expectations were not immediately available, investors cheered the better-than-expected revenue performance. Yalla's average monthly active users (MAUs) increased by an impressive 14.5% year-over-year to 40.2 million in Q3 2024, while the number of paying users grew 12% to 12.6 million.
In the earnings release, Yalla's management attributed the robust performance to strategic initiatives aimed at enhancing localization through new gamification features and targeted gaming events. Efforts to streamline operations, optimize user acquisition strategies, and further develop the company's product ecosystem also contributed to the solid results. Looking ahead, Yalla is focused on expanding its presence in the mid-core and hard-core gaming segments within the MENA region, leveraging its expertise in casual games and commitment to user experience.
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